AN ACT Relating to the distribution of child support collected by the office of support enforcement; amending RCW 26.23.010, 26.23.030, 74.20.330, and 74.20A.030; and declaring an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

Sec. 1. Section 1, chapter 435, Laws of 1987 and RCW 26.23.010 are each amended to read as follows:

The legislature recognizes the financial impact on custodial parents and children when child support is not received on time, or in the correct amount. The legislature also recognizes the burden placed upon the responsible parent and the second family when enforcement action must be taken to collect delinquent support. The legislature further recognizes that when support collected by the office of support enforcement is promptly paid to custodial parents that financial hardship and the risk of the family becoming dependent on public assistance is reduced.

It is the intent of the legislature to create a central Washington state support registry to improve the recordkeeping of support obligations and payments, thereby providing protection for both parties, and reducing the burden on employers by creating a single standardized process through which support payments are deducted from earnings.

It is also the intent of the legislature that child support payments be made through mandatory wage assignment or payroll deduction if the responsible parent becomes delinquent in making support payments under a court or administrative order for support.

It is further the intent of the legislature that support collected be remitted to the custodial parents promptly.

To that end, it is the intent of the legislature to interpret all existing statutes and processes to give effect to, and to implement, one central registry for recording and distributing support payments in this state.

Sec. 2. Section 3, chapter 435, Laws of 1987 and RCW 26.23.030 are each amended to read as follows:

(1) There is created a Washington state support registry within the office of support enforcement as the agency designated in Washington state to administer the child support program under Title IV-D of the federal social security act. The registry shall:

((~~(1)~~)) (a) Account for and disburse all support payments received by the registry;

((~~(2)~~)) (b) Maintain the necessary records including, but not limited to, information on support orders, support debts, the date and amount of support due; the date and amount of payments; and the names, social security numbers, and addresses of the parties; and

((~~(3)~~)) (c) Develop procedures for providing information to the parties regarding action taken by, and support payments collected and distributed by the registry((;)), which procedures shall include providing a monthly notice to a custodial parent for whom support is collected of the amount of support collected, how the amount of support collected is distributed, and advise such parent of the right to a hearing pursuant to chapter 74.08 RCW.

((~~(4)~~)) (2) The secretary of social and health services shall adopt rules for the maintenance and retention of records of support payments and for the archiving and destruction of such records when the support obligation terminates or is satisfied. When a support obligation established under court order entered in a superior court of this state has been satisfied, a satisfaction of judgment form shall be prepared by the registry and filed with the clerk of the court in which the order was entered.

(3) The child support registry shall distribute all moneys received in compliance with 42 U.S.C. Sec. 657: PROVIDED, That support received by the office of support enforcement shall be distributed promptly but in no event later than eight days from the date of receipt: PROVIDED FURTHER, That when the office of support enforcement collects support, except support collected by means of an intercept of federal tax refunds pursuant to 42 U.S.C. Sec. 664, (a) for the five-month period following termination from public assistance, all such support collected up to the maximum of the support coming due during such five-month period shall to the extent permitted by federal law be paid to the custodial parent prior to any distribution pursuant to 42 U.S.C. Sec. 657(b)(4); and (b) at the end of such five-month period, if the office of support enforcement is authorized to continue collecting support, all support collected up to the maximum of the support coming due for those months since the receipt of the last aid to families with dependent children grant, shall to the extent permitted by federal law, be paid to the family prior to any distribution pursuant to 42 U.S.C. Sec. 657(b)(4).

(4) When a responsible parent has more than one support obligation, or a support debt is owed to more than one party, moneys received will be distributed between the parties proportionally, based upon the amount of the support obligation and/or support debt owed.

(5) If the Washington state support registry distributes a support payment to a person in error, the registry may obtain restitution by means of a set-off against future payments received on behalf of the person receiving the erroneous payment, or may act according to RCW 74.20A.270 as deemed appropriate. Any set-off against future support payments shall be limited to amounts collected on the support debt and up to ten percent of amounts collected as current support.

Sec. 3. Section 22, chapter 171, Laws of 1979 ex. sess. as amended by section 3, chapter 276, Laws of 1985 and RCW 74.20.330 are each amended to read as follows:

(1) Whenever public assistance is paid under this title, each applicant or recipient is deemed to have made assignment to the department of any rights to a support obligation from any other person the applicant or recipient may have in his or her own behalf or in behalf of any other family member for whom the applicant or recipient is applying for or receiving public assistance, including any unpaid support obligation or support debt which has accrued at the time the assignment is made. Payment of public assistance under this title operates as an assignment by operation of law.

(2) The department ((~~may, and under appropriate circumstances~~)) shall((,)) continue to establish the support obligation and to enforce and collect the support debt for a period not to exceed three months from the month following the month in which such family ceased to receive public assistance, and thereafter if a nonassistance request for support enforcement services has been made under RCW 74.20.040 (2) and (3). The department shall distribute all amounts collected in accordance with 42 U.S.C. Sec. 657 and RCW 26.23.030.

Sec. 4. Section 3, chapter 164, Laws of 1971 ex. sess. as last amended by section 31, chapter 435, Laws of 1987 and RCW 74.20A.030 are each amended to read as follows:

The department shall be subrogated to the right of any dependent child or children or person having the care, custody, and control of said child or children, if public assistance money is paid to or for the benefit of the child, to prosecute or maintain any support action or execute any administrative remedy existing under the laws of the state of Washington to obtain reimbursement of moneys expended, based on the support obligation of the responsible parent established by a superior court order or RCW 74.20A.055. Distribution of any support moneys shall be made in accordance with 42 U.S.C. Sec. 657 and RCW 26.23.030.

Public assistance moneys shall be exempt from collection action under this chapter except as provided in RCW 74.20A.270.

No collection action shall be taken against parents of children eligible for admission to, or children who have been released from, a state school for the developmentally disabled as defined by chapter 72.33 RCW.

The department may initiate, continue, maintain, or execute action to establish, enforce, and collect a support obligation, including establishing paternity and performing related services, under this chapter and chapter 74.20 RCW, or through the attorney general or prosecuting attorney under chapter 26.09, 26.18, 26.20, 26.21, or 26.26 RCW or other appropriate statutes or the common law of this state, for a period not to exceed three months from the month following the month in which the family or any member thereof ceases to receive public assistance and thereafter if a nonassistance request for support enforcement services has been made under RCW 74.20.040.

NEW SECTION. Sec. 5. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

NEW SECTION. Sec. 6. This act is necessary for the immediate preservation of the public peace, health, and safety, the support of the state government and its existing public institutions, and shall take effect immediately.